As car buyers turn to used vehicles in their search for affordable options, the market is seeing a surge in prices, with the average price now topping $25,500.
The details: Data from CARFAX’s seven-day median show prices jumped $1,500 since mid-March. That follows a $450 or 1.7% jump in prices from February. The March increase in 2025, by comparison, was 1.1%.
The sharp increase follows used car prices hitting their lowest point in the past year in January.
SUVs and luxury SUVs, which were up 2.3% at the end of March, continue to rise in price.
With gas prices topping out over $4, EV demand is surging, with prices jumping by $560 in the past month.
Why it matters: Consumers looking for affordable options on the used market are finding prices elevated. A recent rise in sales, continued inventory constriction from the COVID-19 pandemic, and increased prices of newer models have all contributed to the rise in prices.
Additionally, fewer high-demand, lower-mileage certified pre-owned vehicles are entering the market, meaning the limited quantity demands a premium.
Zooming in: Though prices across the board increased by $1,500 in the past month, it’s worth noting that prices are not jumping as quickly as before.
Florida is considered the state presenting the best value based on CARFAX’s estimated history-based value, with listing prices being below the recommendation based on the vehicle’s history. Texas and California are second and third in presenting the best value.
Depreciation continues to slow, and used vehicles retain their value. CARFAX data shows that 2025 models depreciated 12.5% and 2021 models 34%.
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What they are saying: “There continues to be a limited used car inventory, and with that lull in supply, prices increase,” said Patrick Olsen of CARFAX. “It’s the classic supply and demand. But in that, EVs have seen a resurgence with gas prices rising. The demand for EVs is up. As new car prices continue to get higher, used cars are being considered by more consumers than one year ago.”
Bottom line: A rise in used-vehicle prices will require dealers to be creative in sourcing inventory, looking at all options in a competitive market, from service lanes, trades, online, and auctions, while pricing competitively for retail.
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